>> you don't own that name, do you? >> no, i don't own qualcomm, i own cisco. >> doc >> i don't own qualcomm either i like jim's pick as a breakout. >> good stuff, thanks. j.j., thanks for being here. stocks are off the lows of the day. enclosure l clearly a lot of focus on trade. "power lunch" starts now. i'm melissa lee. trade stalemate, canada and the u.s. can't seem to come to a deal on nafta with today's self-imposed deadline closing in where do we go from here and who could feel the most pain plus tech on a tear posting its best august. will fang and friends stay hot through the fall or is a major rotation on the horizon. and ratings, record contracts and preparing for kickoff. less than one week to go before the nfl season begins. lesley visser joins us to break it all down. "power lunch" starts right now

and we do begin the last "power lunch" of august. welcome, everybody i'm tyler mathisen the dow and s&p are in the red, the nasdaq moving between gains and losses the dow and s&p set to post their best augusts since 2014 and the nasdaq since 2000, up more than 5% just this month alone. consumer discretionary, real estate, technology the top performing sectors energy, however, is the laggard right now. some names on the move, big lots sinking. almost 10% lower apple and amazon continue to deliver and lululemon soaring following a big earnings beat. more on that ahead courtney. >> hi there, i'm courtney reagan here's what else is happening at this hour. the s.e.c. wants to make it easier for individuals to invest in private companies the move is an effort by the

agency to boost lagging interest in public markets. ulta beauty will kylie jenner's beauty line back over to you, tyler. we begin this hour with a big trade deadline that is looming and the news coming out of washington on the negotiations between the u.s. and canada at this hour. it is not terribly positive. eamon javers is at the white house. eamon. >> reporter: yeah, not terribly positive is one way to put it. there's some last-minute drama here in washington the "toronto star" running an exclusive story where they say they have obtained off-the-record comments the president made with bloomberg news of his reaction to the canadian negotiations. here's what the president said in that newspaper article that's getting so much attention. he was asked if he was going to give the canadians any

concessions in these negotiations he implied that the answer to that was no, but he said off the record he could say that it was no, but he wouldn't say that on the record because he didn't want to put the canadians in a box. he said it's going to be so insulting that they're not going to be able to make a deal. so the president implying that he's not giving the canadians anything at all in these negotiations so that has upended the day here in washington as people are keeping a close eye on that u.s. trade representative's building over an 17th street. chrystia freeland, the top negotiator for the canadian side, was asked a short time ago if she thought the americans were negotiating in good faith. >> are the americans negotiating in good faith? do you think they're negotiating in good faith? >> ambassador lighthizer and his team throughout this negotiation have been working really, really hard as i said, our starting positions at the beginning were

very far apart i think at this point we know what each side needs and we're working hard to find a way -- >> reporter: so just reading the body language there, an awfully long pause after she was asked if the americans were negotiating in good faith after she said lighthizer and the others were working hard she did not say she felt they were negotiating in good faith so now there's a mystery here on top of a dilemma the dilemma is what happens now to this deal do the canadians get in or out we've only got a couple more hours to figure that out the mystery is who leaked these off-the-record oval office comments from the president of the united states and why did they do it tyler? >> fascinating why these off-the-record remarks given to the head content officer over at bloomberg, and there was other parts of the interview that obviously were released last evening. but why these got out and who let them out, who let the dogs

out, we don't know that. any suspicion? >> reporter: oh, there's a lot of suspicion, i can tell you that, but there's no actual information. there's two sides if you want to look at it this way. there's two sides that have access to this presumably the white house made their own copy of a tape of these comments for their own purposes and the bloomberg reporters would have had a recording of this tape so the question is which camp did it come from and how did it get to the canadian newspaper we just don't know the answer to that but i can tell you there is intense speculation here at the white house about how all this went down. >> regardless of how it got to the "toronto star," the fact of the matter is if there's no deal with canada, we enter next week, a holiday-shortened trading week with no deal in place on nafta and another round of tariffs due to hit, another $200 billion worth of goods in terms of the trade score, the white house doesn't enter the week very strong. >> reporter: and you saw the president previewing that in the on the record part of that

bloomberg news interview yesterday. he said, hey, if we don't get a nafta negotiation by friday we'll get it at some other period of time, implying that if they don't meet the self-imposed deadline of today, he thinks the canadians will come around and come to the table. all of the incentives would be for all three of these countries to come to a deal because their economies are so interlinked and intertwined. the supply chains are so complicatedly wound throughout all three countries that it doesn't make much sense not to have a deal. that said, there's a lot of personalities and politics at play here so that could be what upends this and so we'll have to wait another couple of hours and see where we go. >> i'm not exactly certain, eamon, what the president's intention would have been by saying the deal is going to be so insulting they can't accept it what would his intention there be >> reporter: the context, tyler, there is and you might hear a rather large presidential helicopter taking off behind me.

but the context of those comments is he was asked if he's making any concessions to the canadians. and he says according to the "toronto star" the answer is no, but i can't tell you no on the record because that would be insulting to the canadians it would make the canadians look like they're getting a raw deal here and i don't want them to be put in that corner so that's what the president is suggesting there, that he doesn't want to embarrass the canadians but he does want to boast a little bit to the bloomberg reporters about what a great deal he's about to cut because he's not giving the canadians any concessions. the president there being a little diplomatic behind closed doors despite his reputation for bluster on the world stage. >> that's an interesting twist on the phrase diplomatic, but be that as it may, eamon javers at the white house. well, the markets trying to make sense of all the headlines coming out of washington right now. as we close in on the final hours of the trading month, tech has been the big winner. the nasdaq posting its best august since 2000. bob pisani is at the new york stock exchange with the latest hey, bob.

>> so what is the skepticism on nafta worth to the markets look at the s&p 500. the answer is pretty modest, about six points we were 2,900 or so when the foreign minister of canada started making comments a little after 11:00 eastern time so let's watch that and see what happens for the rest of the day. melissa is right about august. we've had a terrific august, better than we usually have, but it's about technology largely. the nasdaq 100 far and away the best performer on the month. twice the performance. s&p. we had a lot of help from health care in the s&p 500, but that's a separate story i want to highlight this outperformance on the nasdaq 100. it's come at a price one of my old friends said it's a maurket of two stocks now apple and amazon, look, 20% month to date, amazon 13% month to date. these are amazing statistics now as a result of the movements of these stocks, they're disproportionate weighting in the nasdaq 100 apple is 12% of the nasdaq 100

amazon is 11 you put it together, the two of them are almost a quarter of the entire nasdaq 100. you throw in alphabet, throw in facebook and after that you throw in maybe intel and you've got maybe five stocks that are close to 50% of the nasdaq 100 that's a little bit lopsided and it implies that if anything happens to those stocks that that outperformance on the nasdaq 100 is obviously going to head south guy guys, back to you. >> thank you very much, robert. how worried should investors be that there may be no new nafta deal by the end of the day? could this be a spark that derails the record-breaking august rally let's bring in kevin coron and sandy sanders. let me set aside the trade worries just for the first question and try and tee up the conversation as i see it kevin, you say that you expect risk to increase from here, you

expect lower equity returns and higher volatility. sandy, you say the u.s. economy is strengthening and the pace of growth is accelerating and there's definitely more room to run here the overall market can go higher that sounds like you guys don't agree. kevin, explain your position, and, sandy, take your position. >> okay. so what i'm stating or what you just stated was that call tivoly has been very, very low. we've had a good economy, very low interest rates, lots of liquidity. 2017 was a record low year in terms of the volatility we saw in the marketplace so it's not an enormously bearish call to say volatility will increase, it's just going to move back to something more normal. on the return side looking ahead with a long run perspective, we are acknowledging a stronger economy, but we also have to acknowledge that a lot of it is

priced in already because multiples are at a premium, not a discount so we have to haircut our forward-looking long run perspective to account for those higher valuations. so those two statements, more volatility and lower returns going forward from where we are are really not controversial calls, it's just taking into account the facts as we see them. >> so it's not as bearish as it might appear or i inferred from them sandy, your rejoinder. >> i would say on the flip side the u.s. consumer drives the bus on the economy the u.s. consumer is seeing basically the best employment picture they have seen in almost several decades. on top of that, their interest expense versus their overall income is near a ten-year low so the consumer balance sheet is good, housing starts are well below average and the banking system, the large cap banks are probably the strongest they have been in a generation so coupled with a lower corporate tax rate and small and medium business confidence

index, basically the highest level since 1983, we think that in general growth is likely to accelerate in the u.s. economy and with the stock market trading around 16 times forward earnings, i think it's a very reasonable level to expect further gains ahead. >> sandy, what are we waiting for in terms of the financials i see that you like them but you could have made this argument for financials the entire year and so far year to date they are up about 4% as a group is it the spreads between 2s and 10s? what are you waiting for >> well, the banks basically, when you look at the fundamentals with regard to loan growth, net interest margin expansion, the return on tangible common equity, basically the overall fundamental picture looks very healthy. the stocks have been trapped within this negative sentiment vortex around trade wars, around really that -- concerns around china. but the fundamentals are quite healthy at the banks and they're trading near, based on our

estimates, less than 70 cents on the dollar so citigroup, bank of america look very attractive right here. on top of that you're getting nice healthy capital returns so they're buying in a ton of shares they have been passing the stress test for eight years in a row and now they're increasing dividends. in fact the u.s. banks are now the new dividend growth names. >> kevin, if we can take a step outside of the u.s. and talk about the rest of the world, emerging markets have really taken a hit as of late do you think that there's any opportunity to get in or is there still more risk to the downside when we're looking at emerging markets >> we're looking at emerging markets too. we're still underweight emerging markets and we're noticing that the valuations are getting better they have been through a long period of underperformance but the place where we're concerned with emerging markets is on the risk side of the equation if you look at global credit growth, and we look closely at that because the credit cycle has a long history of being useful in thinking about how

cycles work. if you look at global credit growth, 90% of it, of private global credit growth has come from the emerging markets and especially china so on the other side of that, that ramp-up, you would expect to see some indigestion and that's what we're seeing now so we're staying away from it for the time being, still underweight because of those risks. but we have to concede that when you look at the valuations there, they are getting more compelling. >> all right, kevin, thank you very much. kevin caron from washington and sandy sanders. now to a big deal in the beverage space tyler will take a drink here too. coke paying $5 billion for a british company that competes with starbucks sara eisen spoke to coke's ceo about the deal hi, sara. >> hi, courtney. coffee is hot, literally it's growing faster than more drinks 6% globally, and that is what coke is after here

but it's the retail side of this that is raising some questions on wall street costa has about 4,000 stores across 30 countries, number one in the uk. that's the big market. so i asked the ceo of coca-cola, james kwinzquincy, why retail here's what he said on that front. clearly part of the strategy is having stores because they build business and the brand we are buying a great management team that knows what it's doing in retail, clearly not our core competence he admits along with roasting coffee, that's what they're bringing we're bringing global scale. we can introduce different formats as a total beverage provider in some places, you might see stores, beans, machines. so really emphasizing it's not just the retail strategy here. as far as the u.s. market, he said they don't have plans to go toe to toe with starbucks and open up a bunch of coffee shops. the focus on bringing costa to the u.s. is more on food service with the big restaurant and

service contracts coca-cola has. also costa has vendsiing machins and beans and pods according to stats, coke is ramping up the portfolio with higher growth areas, sparkling waters, teas, coffees. remember it took a big stake in body armor, the sports drink, a few weeks ago. that's the logic behind pepsico's deal with sodastream both of those deals were the biggest deals in years so they're getting more aggressive when it comes to chasing growth and where the consumer is going. >> thank you very much, sara coming up, president trump saying the eu's offer of zero tariffs on u.s. cars in europe isn't enough plus ford scrapping its plan to sell a chinese-made car in the u.s. the latest on cars and trade

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ford scraps its plan to sell a chinese-made car in the u.s. because of tariffs phil lebeau joins us with that

story. hi, phil. >> hey, tyler, this is the focus active if the focus sounds familiar it's pause it was the vehicle that was built here in the united states, was going to be built down in mexico president trump got elected and said no, that's not going to work now we're going to move it over to china guess what, there's 25% tariffs on vehicles there and it has scrapped the plan to start selling the focus active here in the united states. the reason, the 25% tariff from china. also this happens at a time when ford's car business is shrinking. so it's not a tough decision to make i just got off the phone with the head of ford north america and he said we obviously had to reassess the business case it didn't make sense, certainly not with a 25% tariff on a low margin, low profit vehicle like the focus active the reason that we're showing you a five-year chart here on ford is because this is a stock that continues to be under pressure morgan stanley out with a note

today, adam jonas, the analyst there, saying wish we knew the plan, talking about ford's restructuring plan remember, this is a company that's already scrapped plans for one analyst meeting that was supposed to happen next month. they moved that to sometime in the future when, nobody knows they're also saying -- adam jonas is saying, look, we think that the ford cash flow next year will be significantly lower, so ford under pressure. also the other story in the auto industry everybody is focused on, what's happening with the negotiations over a trade deal with canada. let me show you where we are in terms of vehicles that we get in the united states that are sold in the u.s. from canada. after mexico, the next biggest import country is canada, about 11.6% of the vehicles sold here, gm and fiat chrysler, they both have large canadian operations, as does toyota and honda as you look at shares of gm and fiat chrysler, they have a lot at stake in part because of

their huge production facilities up in canada and the number of vehicles imported from there guys, in the auto industry right now it's a little tough to find anybody who can say for certainty where they're going to be building vehicles outside of the pickup trucks and vehicles here in the united states. anything that they're bringing in, all of that is being reassessed. >> could we see other auto companies do the same? let's bring in paul. great to have you with us. i want to home in on the ford story specifically phil makes a very good point nobody wants to buy small cars so maybe for ford that was an easy decision. was it also -- are tariffs also providing ford a convenient excuse if this is a company that needs to examine what it's doing in light of the moody's downgrade of its credit rating to one notch above junk just yesterday, blame it on the tariffs? >> right ford has done that before with

the decision of mexico, not to build the focus down there it's really quite interesting. president trump has been all over the lot on a lot of things. whether the flag is going to be flown over the white house at half mast for john mccain, they reversed themself. but one thing he's been absolutely consistent rightly or wrongly is trade policy. he believes that trade is a zero sum game if we are buying more from another country than we sell, that has to be rectified as opposed to a win-win game that most economists believe in gm has a similar situation it has a small suv that it wants to import from china it's taken a different route, however. instead of saying we're not going to build it anymore, they have applied for an exemption from this tariff saying, look, we'll earn profits on this vehicle that we can reinvest in the united states. this is a buick suv. now, of course the counterargument there is wait a minute, the money is fungible, how do we know where those profits go

nonetheless, gm invests a significant amount of money every year in the united states. so you're going to see more of this with the president because he seems to be absolutely consistent on this as opposed to perhaps some other things. >> and he seems, paul, to be using the automobile business as a particular, dare i say it, trump card in all of this. he said apparently in parts of the leaked interview with bloomberg that any time things hit a snag with canada, he holds up a picture of a chevrolet impala he's made sort of a bellicose stance with respect to european imports. so cars are really at the heart of his trade strategy. >> well, it's easy to understand why. don't forget cars are high value items and they're also highly visible in the american psyche, right? you can talk about putting import restraints on services such as consulting agreements and that sort of thing, but no one really sees those. cars are very visible. now, the truth is that over time

and over not too much time this is going to raise prices for american consumers so how people are going to relate to that remains to be seen the other thing it could do is really threaten american jobs in lots of ways a lot of these vehicles that are built in canada and built in mexico and come into the u.s. are built with parts, components that are imported from the united states into canada or mexico, assembled into final vehicles and then shipped back that's what the nafta free trade agreement was all about. >> phil, i have a question, i guess. what happens now if you're ford and you said this is a low margin vehicle so it doesn't make sense for china with the tariffs. maybe it was mexico, that doesn't make sense anymore so what now? can they make it in the united states if they do, isn't that ultimately president trump's goal >> well, look -- >> go ahead, phil. >> paul, you can jump in because i think you and i are on the

same page here with regard to the focus active they're not building it here in the united states. could they if they really wanted to if it was highly profitable and a high volume vehicle, they'd find space for it. it's not it's a low volume vehicle. it's low profit margin so they're building it in china because that's the primary market for it but they were going to export it out of china into the united states no longer makes sense. i do think what we're going to see from the auto industry is more manufacturers will look at their portfolio in terms of what they sell in the u.s. and they're going to say not a high volume, not high profit margin, not worth importing, not worth going through the hassle of that that may result in fewer choices in showrooms in the future, particularly on the car side. >> all right, we're going to leave it there, gentlemen, thank you so much. we're continuing to watch all things trade related as the u.s. and canada and mexico try to hammer out some kind of a deal will chrystia freeland come to that door with the announcement

of a deal without pausing so much we'll be watching. also there are a lot of things to consider when buying a home how your pet will like it is becoming a bigger consideration point for a lot of people. that's coming up on "power lunch. g out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

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late yesterday they have been raising the number of the deceased victims it now stands at eight several of those injured remain in critical condition as the investigation continues. mourners gathering in the capitol earlier today for senator john mccain's memorial service. he will lie in state until sunday tomorrow there is a service at the national cathedral and then he will be laid to rest at the u.s. naval academy. meanwhile in detroit, a celebration of the life of aretha franklin where performers like faith hill and ariana grande paid their respects just last hour the reverend al sharpton received a standing ovation after he read a letter written by the former president barack obama. and it's going to cost you more to fly. united airlines is becoming the latest carrier to raise checked bag fees the price for the first check ed bag will rise to $30 from $25.

second bags on flights to and from canada, that's going to run you $50. and they don't like a lot of carry-on either, so what are you to do? i don't know that's the news update back to you. >> such a tough one because you're not just paying that one way. if you check a bag, you've got to get it back too. >> that's right. it doubles your fees. let's take a look at the markets. the dow jones industrial average is off just a bit as is the s&p 500 but we are off session lows. the nasdaq the only index in the green, higher by just about 6 points right now we're continuing to keep an eye on one of the steel etfs ticker slx it's on pace to post its worst level in two years, down nearly 20% on pace for its worst month since march. up a percent this session. tyler, back to you. a lot of things to consider when you buy a new house there's price, of course, but

the neighborhood, proximity to your job increasingly people are also making decisions on what's best for snookems, their pets >> we started to see this demand five years ago and all those new urban rental buildings, the rooftop dog parks, the pet salons now millenials are buying homes and a striking number of them are making decisions paced on their pets jessica evans sold her condo and bought a house for her dog, lucy. >> i loved living in a downtown area in a condo. it was great, it was very convenient, i didn't have housework. but the one thing that was missing was my dog's happiness. >> she is far from alone 73% of millenials currently own a pet. that's more than any other demographic. and a whopping 89% of millenials who bought homes so far this year own a pet according to

realtor.com. that has millenials putting their pets' needs front and center in real estate decisions. 79% of pet-owning home buyers who closed this year said they would pass up an otherwise perfect home if it didn't meet the needs of their pet, according to realtor.com's survey jessica sunk $12,000 into her new home for her dog and her cat. a new fence, a pet door and renovated the basementbathroom for her dog. they want to be close to a dog park and near pet friendly restaurants and pet product stores for more on this, of course, it's all on realtycheck.cnbc.com. >> you know what, i wouldn't look at an apartment if it wasn't cat friendly. wuzzy -- >> but would you change the tile in the bathroom because wuzzy wouldn't like it >> we didn't look at buildings that weren't pet friendly. i'm not giving him up, that's an important part of my life. the market is getting ready

to see a lot more of fed chair jay powell the change and what it means for the markets coming up next. plus the found erp of papa john's is stepping up his fight against the company. we'll have all the details many people living with diabetes

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major change coming for the federal reserve. jay powell will hold a press conference after every single fed decision next year every single one apparently. steve liesman is here with how the markets might be impacted. >> fed chairman's jerome powell's announcement that they would hold press conferences after every meeting already having an impact on the fed funds futures market let's see if we can all see it here on the next chart do we have the next chart? if we did -- that's the wrong chart, i'm very sorry, folks the chart would show the probabilities of the next meetings and what it would show is that there's no probabilities assigned to a chart in november and the off meetings, but next year there's a little probability in every -- each one of them. >> it makes every meeting live effectively. >> now, the fed said they should be on their toes for a possible hike at every meeting.

they previously only raised at quarterly meetings so the market was conditioned to all of this in the absence of this you need to follow the economic data very closely. if you can put up that chart i was just showing you there we go. what this shows and why you have to look out for 2019 this is where each participant is, above the median of 2.9%, eight of them. 4 of them are at the median and three are below so there's a lot of division. you could go seven or below, eight or above, there's a lot to figure out it doesn't mean more rate hikes or fewer rate hikes, what it means is we just don't know when they're coming but the same amount of rate hikes given where the committee ends up. >> steve, thanks. >> pleasure. >> thank you very much. now for the latest in the papa john's saga, john schnatter, the company's founder and biggest shareholder is suing the board and the new ceo. our pizza correspondent, kate rodgers, is following the story. >> is that a promotion

>> take it away. >> john schnatter has filed that suit against the board and ceo seeking immediate assistance from the court to stop the irreparable harm those individuals are causing due to their repeated and ongoing breaches of the duties of loyalty and care that they owe to the company the suit is sealed, so we do not have more details at this time he also filed a complaint against the company seeking documents related to his ouster as chairman. that was last month. before this latest suit was filed, a source familiar with his thinking told me that he is concerned the company is engaged in an active and ongoing effort to cover up the true facts, including by retaliating against those who have reported serious misconduct by the board and senior leadership and then purporting to investigate themselves after all of this transpired this morning, papa john's did fire back with this statement. john schnatter will do anything to distract attention from the harm caused by his inappropriate words. he continues to make reckless allegations in his attempt to

regain control and serve his own interests. they are entirely without merit and we will vigorously defend against these baseless claims. the defense against baseless claims is again vigorously so we'll see what happens. >> this is the gift that keeps on giving. >> both sides both feel they have really clear arguments here. >> it all boils down to the dough. >> the dough dough >> the dough. >> or is it in the sauce >> it's all about the dough. all right, kate, thank you now on to the bond market. rick santelli tracking the action for us at the cme good pizza in chicago too. hi, rick. >> hi. you know, it's an interesting day. we're down a couple basis points but we are up three on the week. you can see it on that one-week chart. a month to date of 10-year considering last trading day of august, well, what i see on that chart is there was a flight to safety in august that made other markets get kind of crazy, although they have settled back dramatically the point is crazy is defined by

that chart today is the 16th. should we stay here we'll close in the 2.80s 16th session in the 2.80s. this market is pretty comfy. if you look at a may 2nd start all the way back in 2014 is the last time you'll see the italian bonds up at this level, 3.25 it's been a big week pushing bund yields down which makes our curve flat and the yield curve a big question as to the fed some of it doesn't quite add up. a june 1st start of the dollar index, you could see that volatility in august but it's gotten back to pretty much the same range it was, and a stable dollar is probably the most beneficial for the multi nationals. melissa lee, back to you. >> you mentioned 16 sessions in the 2.80s on the 10-year how many sessions have the 2s been in the 20s? >> probably two times that amount. >> rick, thank you

rick santelli at the cme tracking all the action here. let's take a check of the markets here as we are closing out the month of august with the nasdaq on pace for its best month since 2000 the nasdaq right now is up by just a fraction of a percent, up by 7 points here the s&p 500 is down by 6 and the dow is down by 76 points at this point. of course all market participants keeping their eyes out on whether or not canada and the u.s. can reach a deal. let's in fact get to canada's minister chrystia freeland speaking on trade. [ speaking foreign language so good afternoon, everyone. as we said this morning, we're continuing to negotiate with ambassador lighthizer and his team after the meeting i'll be happy to come out and answer your questions. >> did you confront the americans about the --

>> there was chrystia freeland in french first and then in english, basically saying we are still talking, still negotiating, and she had nothing more to say until the end of the meeting presumably later today we will see. trade is obviously the tale that is wagging the market dog, if you will yesterday of course the market sold off on word that the administration was making plans to apply tariffs to another $200 billion worth of chinese goods, and today trade in the form of the ongoing tussel between the u.s. and canada made more complicated by the leaking of some off-the-record comments that the president allegedly made in a bloomberg interview has apparently inflamed or irritated, been an irritant to the other side in those negotiations so the market having a hard time getting any traction the nasdaq barely positive the others negative. >> speaking of the nasdaq, still to come, apple and amazon's

amazing august, both up double digits can these tech giants keep sizzling after summer? next, the nfl season just days away and the league is helping its big bet on the small screen, that is your phone, will stem the fall in ratings on the tv screen. that story next when "power lunch" returns

♪ ♪ put your data to work on the cloud that drives business. the ibm cloud. the cloud for smarter business. football season kicking off next thursday, and this year the nfl is hoping to reverse last season's ratings slide pie making it easier for fans to watch on their phones. julia boorstin has a look at the nfl's new strategy. >> this season you'll be able to live stream all in market and primetime games. the streaming deal with verizon will enable 400 million phones

and tablets to stream games for free, up from the 100 million phone subscribers who had streaming access last year it will be on aol and yahoo! plus the nfl app amazon and twitch will stream 11 thursday night games >> our first goal in more digital distribution is just reach. it's to get to people who may not be in front of a television. what we do know is that when people watch nfl games on smaller screens, it's usually a st stopgap to get to a bigger screen. >> they are hoping to transition digital viewers to tv. after last season nfl ratings declined 10% after falling 8% from the prior year. to keep all those nfl viewers engaged, the nfl is expanding new, less intrusive ad formats it will have fewer breaks and show ads on a split screen plus it's trying some new sponsored breaks we'll have to see how fans react when the season kicks off on

thursday back over to you. >> julia, it expands the number of potential viewers here. do you have to be a verizon cellular customer or verizon fios customer to take advantage of these new platforms >> you don't so last year if you wanted to stream, you had to be a verizon subscriber you had to have verizon on your phone. now anyone can do it so if you're a sprint or t-mobile or at&t and you have your phone with you, you can go to one of verizon's properties you can go to yahoo! or aol which are part of oath which is owned by verizon or go to the nfl app. so what verizon is doing is opening up the doors it's not just on their closed system, it's to subscribers of any phone system. >> we'll talk a little bit more about the nfl, about this new streaming property with lesley visser, the extremely experienced and knowledgeae s or creonntbl back after this.

you heard about the nhl big bet on digital it is it a smart idea? let's bring in someone knowing more than a thing or two about football leslie visser. hall of fame broadcaster with cbs. good to see you. i get the idea gnaw can't ignore

the digital streaming avenue for presenting the ball games. but ultimately is this a good move for the nfl in that it might affect what cbs and nbc, and espn, and fox might be willing to pay for those broadcast rights for conventional television? >> hi, tyler, hi, melissa and courtney great question it's julia and brian layed it out beautifully. but it can't be forgotten the nfl is the behemoth of the 50 highest rated shows on television 37, almost 75% were the nfl. eight of the top ten shows more than the academy awards or grammys. but the nfl realizes the fans are migranting to other platforms and they want to stay in tune with that. it's interesting they've been using thursday night football as the incubator as julia mentionwood the split screen with the beer ad on one

side and odell beckham on the other. and companies want in. you've been talking about papa john's i wonder if piz aire hut shaud call themselves pizza hut hut. people still want the nfl consumer. >> but i guess my question is, that they seem to be filleting the viewership or the marketplace. and i wonder whether they are going to substitute the sort of analog dollar was the digital dimes. so now you watch on the conventional networks. you're going to be able to look on aol or yahoo! or the nfl or twitch it? what was if twitch, twitter? there are a lot of ways to watch it and i don't know whether you n can. put together the same audience

as well i don't know. >> the nfl realized it's inevitable the fans are not staying home watching all kay on a sunday they have to go where the consumer goes, across many, many platforms. i think even facebook is going to have highlights you kind of go where the meal is. >> leslie i have a question about the big contracts in the nfl. we have aaron rodgers getting the huge contract, $134 million that's the headline number and then odell beckham jr., five years, $95 million those are the headlines, right and the numbers the agents like to sell. that's not guaranteed. that's not actually what the players end up making, is it what is sort of the final payday. >> well for those two any will have a hefty guaranteed contract but what it is is they cull it new money in the nfl and what happened was back -- since 2013 the salary cap has gone up 43%. it's almost -- i think around $180 million now that means there is a lot of new

monopoly money i think it's interesting that tom brady who has been to the super bowl in half of his career makes a measly $20 million what it means, tyler, is that if you want to go to the nfl go to market now. >> yeah. >> are they overpayed aaron rodgers and odell beck ham wrn they injured a big part of last year. they haven't gone to the super bowl half of their career as you gave the tom brady stat. are they worth that much. >> i'm always of the thought that it's what the market bears. unless the fan says i can't afraid to park, can't buy season tickets. we haven't seen that yet but it's sort of that -- the contracts are -- they can say hey beyonce makes five times as much in two concerts if people want to see aaron rodgers and the green bay packers believe me they are not carrying. >> and tom brady's wife makes four or five times as much petitions np aaron donnel of the

rams signed $135 million deal in the last few minutes big defensive star facing the other issue is the controversy, the matter of the anthem and the matter involving colin kaepernick, the first protester taking a knee during the anthem yesterday a court saw clear to allow his collusion case against the nfl to go forward. in other words, that he is being effectively banned by a collective decision of the owners not to employ him how much jeopardy does the nfl face in the court of public opinion and the courts of law? >> well, here is what happened it was almost two years ago to the day that colin kaepernick -- he went as many people now know -- went to his friend who was a decorated green beret the nate buyer and said i would like to add my voice to black lives matter how can i do that in peaceful

protest? and nate buyer said take a knee that's what we do to honor a fallen soldier that's what kaepernick did it's morphed into this thing about they don't respect the anthem or don't respect the flag but that's not at all what he was doing. so i think that this determination by the court what we know is they found enough evidence for him to go forward with a collusion proceedings now we don't know whatwill be at trial but i think that it's a great thing, that every single owner will get to be heard colin kaepernick will be heard and you know, tyler, as we know democracy dies in the darkness. >> leslie visser always great to see you we'll have you back soon. >> please. >> thanks very much. >> thank you guys. >> leslie visser when we return we head back to washington for the latest developments on the tense back and forth between the u.s. and canada on trade. plus the president set to hold an event in choorlt, looking to change how americans save for

retirement we will take you there live in charlotte. his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.

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the september, the months is traditionally the worst of the year for stocks and midterm years are even worse on average. will this year be different? plus apple's massive month that stock having the best month since 2012 up 20% in august alone with the big product event two weeks airway should you stick with this wall street darling or take money off the table? plus money overhaul, the president set to sign executive order that could lead to changes in retirement savings plans. we have the details and what it could mean for your money as power lunch, the second hour starts right now and welcome to "power lunch. i'm melissa lee. a mixed picture in the markets right now. the dow and s&p are set to post the best august since 2014 and the nasdaq best since 2000 right now the dow down 65 points and s&p town and the nasdaq up

by 11. consumer discretionary and health care are the winners for the month and energy the worst performer. leading the dow. sysco appear apple and nike. apple by the way is hitting another all-time high with the gain of 1.25%. and names at all-time highs tjx alta on the back earnings report microsoft and. gas prices hitting the highest level since 2014 the average price over the labor day weekend specked to be $2.84. sorry, drivers united airlines is immediately hiking checked bag fees for flights within north america the cash even and central america. paying more there. the first checked bag rice $5. and second will rice to $40 each way. and lyft is in talks with an adviser for a targeted march or april 2019 ipo the company is currently valued at $$15.1 billion.

over two ty. >> we begin with the developing story out of washington. will we get a trade deal with canada negotiations still under way but they seem to be burpee ladies and gentlemen let's go live to eamon javers at the white house eamon. >> they are sweating it out here in washington on this very humid day. at the end of the summer here in d.c. and we are expecting developments to be posted to us and updated to us as they happen throughout the appropriate afternoon thp chrystia freeland updated reporters not saying a whole lot. but the negotiations in afternoon have been sort of roild by the publication by the torrent of sun newspaper of leaked comments oft comments from the president of the united states in the oval office, saying apparently according to the newspaper that he did feel he was giving the canadians no concession what is so far but doesn't want to say that on the record because it's so insulting they can't make a deal

the president signaling in the off the record snippet of tape or transcript that he don't give the canadians any concessions in the negotiations that led the canadian delegation to walk in and point that piece out in the newspaper to their american counterparts suggesting that they wanted to have some concessions. so where does all that leave us today? we simply don't know at this point. chrystia freeland indicated throughout the day that things are moving behind the scenes here is what she said earlier. >> both the canadian and the u.s. teams have been working hard this morning. as we have been for more than a year now on this very important negotiation. we are not there yet >> reporter: to, tyler, two mysteries simultaneously now what does all this mean for the negotiations behind the scenes and then of course who leaked that tape, and why did they leak it back to you. >> eamon thank you

eamon javers on the north lawn. all the trade uncertainties mounting into september. historically the weakest month of the year for markets. could this be an exception mike santelli is live at nyse with more. >> hi, melissa the history are clear. the september is usually worst more down than up. but there are many exceptions. i think the context matters. one piece is september has been weak largely or at least in large part because downward earnings refrgss happen at a more intense rate in the years when september market porpds is bad. that's not going on. also when the year as a whole has been strong september has been less scarey when the s&p is up 5% as of labor day the following four months have been better than average. so it seems as if the market is not struggling, if earnings are not really soft heading into the period there is a little bit less chance it's a washout or if you get downside

turbulence that's the take away seasonal factors are part of the mix but don't tell you the predictive story. >> thank you mike. we know that past performance doesn't guarantee future results but we like to look when we follow the trends appreciate it. the dow and s&p 500 dropping to session lows on petitionsism over the u.s. and canada trade talks as trade issues persist will the record rally we saw in august continue? or are we in for the september swoon? what will the future look like darin richard. and mark with penn mutual assets management darren, starting with you you heard mike santelli gou through the historical facts we know september typically the worst month of the year. usually losing a% or more over the history. but we have the nice setup looking at the economic back drop and the strong earnings into the end of the year

darren, what do you think where will the markets go from here. >> i i actually think we will grind higher in september. but i think there is a couple of things we need to look at. first of all earnings season is over and 25% earnings growth for the s&p 500 pushed stocks higher we are having a quiet period we are not having the floor on the market where earnings have been going up. the fed meets later this month and they're going to raise rates more than likely and if they indicate they raise rates at the end of the year in december right now a 60% probability. if that fwoes higher that could be a head wind we have potentially 200 billion of tariffs against china and midterm elections coming up in two months despite the higher momentum there are things to derail it. investors need to be wary. >> there is some question marks. mark, what do you think about what the bond market is indicating we continue to be worried about this inversion of the yield curve. when you look at equities and

looking at signals from the bond market, mixed signals. >> its feels lieb the bond and equity markets are sending contradictory signals to investors today. bond yields up decline so far in august that's despite the rally within the s&p and other equity markets in the united states but we do see signs of trouble brewing on the horizon the performance on wednesday was troubling today of the equities. we saw the s&p rally even as turkey and argentina were in the midst of a meltdown. to me the disconnect between what's happening in the u.s. assets international assets. >> why should there be a connects if it's widely true viewed there is no transmission mechanism of the cajun the u.s. markets reflect the united states right now. and that is strong economic growth, strong corporate profits, right >> which will ob o, often times you see the fed tightening hitting the weakest hands across the m-

italy, argentina and turkey have been exposed as weak hands so far this year. but, you know, one of the reasons the equities did well last year was synchronized global growth story. to the extent we see trouble spots within other spots across the globe, that's drying up dollar liquidity we think it's the impact of the fed tightening that flows to u.s. shores. >> darren pick up on the international point, i note that you made a bet on international developed markets lastier. so far it hasn't really paid off. but you are holding on on the theory it is going to pay off imminently. >> we saw the synchronized global recovery last year. emerging markets up 37%. emerging international markets did well this year a disconnect as you mentioned. the dollar strengtheninged weak in some of the foreign currencies the the tariff trade tax put pressure on the pkts emerge markets down 7% this year, the s&p up 10. you have a 17% delta

starting to become convernalsing disconnects that make the emerging attractive if you throw out turkey and focus more on india, china emerging markets there is good opportunity. that's hard to say is it good time to becerra. there are rebalancing some of the winners and moving back to some of the underperforming areas, albeit scarey is probably a good thing right now. >> hopefully it's not so scarey as everyone listens to the continued advice on pour lunch appreciate you joining us have a greeted from thank you both well let's check out share of lulu lemon. soaring more than 13% on the strong results the retailer delivering some really big numbers online providing a boost ecommerce growth up nearly 50% and sales at physical stores up 109% the stock is up nearly 100% for the year can it go higher sam poser an analyst.

you you said your price target but the p.e. ratio is sometimes like 71 times. historically for lulu it's around 40. it's expensive here. >> we look at the forward out to the next -- the out year it's not quite that high but i mean at the end of the day this is a company that has a ton of momentum right now. there is no complacency as i wrote in my note in what they are doing. there is huge opportunities to grow expensingly .men's business is starting to work here their processes have improved. the product has improved and their engagement has improved we all that pep as a wording but it really has. it's gotten better and better. and when they do that to get they have no competition it's still -- if you think about the size of other businesses it's under a $4 billion global business is he we see lots of opportunities to the continue to grow that's why we think the stocks work higher >> can the camps work higher

10%, to% the numbers are unbelievable at some point they pull back and are we then disappointed or do we know what's going to happen. >> i don't think we see mid-teens, 20% comps going forward. but as the base goes higher, i mean, i don't see why we couldn't see you know high singles into low double digit comps the next few years because, i mean, you you have to remember where they came from and where they are going you know, it's still relatively small especially because you are dealing with retail prices on a lot of the sales versus a nike or underarmor or somebody else who most of the sales are wholesale. you're in the selling as many units as it appears with the huge numbers. >> who is losing the share if lulu is gaining sales where is it coming from. >> i think it's a liechlts change i think what's going on. >> people want to be more comfortable these days and men don't want to propers pants they

want to wear you lieu pants to work. >> we have seen some of it around here. >> as many examples back in the newsroom. >> i mean it's are they buying the abc pant from will you lieu instead after pair of chin os from another brand and i would argue yes. i don't think it's necessarily coming out of athletic guys. i think what's happening is that lulu as a brand has an attracten for the product, the service and that engagement. and that wins and it separates them so far from any potential competition that may sell similar type products. >> we got to go but i got a quick question brand-new ceo calvin mcdonald what would be the advice be don't touch it or break if. >> i would say take the time and find the nuances that can be improved upon or built upon to even take it to the next level where we are not looking because you know a few years ago nobody would have said lulu would be doing this.

few investors would think they are doing what they are doing today. as i said i think there is more there to -- it's a great company right now. >> got it thanks so much sam poser. thanks for being here. apple hitting another all-time high having the best month in six years will the rally continue? we have that discussion next plus a canon of caffeine has been fired in the beverage wars with coke's latest move to coffee who is best positioned for growth the president set to sign an executive order and retirement savings plans. how could it impact your money straight ahead ♪ changes ♪

shares of apple hitting another all-time high on pace to chose out the best months since 2012 the company also announcing the next product event taking place on september 12th. should you stick with it or is it a dip in the cards in let's bring in brian white brian always good to see you what are we specking from apple on the 12th is that enough to keep the rally going >> yeah, you know, i think these events are becoming more about planet apple, not just about iphones. and while it's the time of the year that the new iphones come

out, you know, we should get a nice ipad update, a nice mac update and get a lot better information about ar and vr. it's more about planet apple i think we put too much emphasis on the iphone. we see what service is doing. >> you got to put the emphasis on the iphone. that's the majority of revenues, driving the truck right now. so, yeah whb, when they say it's a product announcement it's a product announcement that's mostly iphones. >> but what's growing faster. >> services. >> services is definitely growing faster and even last quarter you saw units for iphones gross 1% you saw the active install base grow double digits, right. so i think -- what does that mean, right? those people eventually go out and buy services that's what apple is doing they are planting all the different trees that will yield, you know, revenue from things like services in the future. >> what is apple's trade

vulnerability? >> well, you know, obviously, you know ob o, china is about 20% of their revenue so i think they have done a relatively good job of communicating with president trump over, you know, their concerns. >> a lot of the phones manufactured there. >> obviously all the manufacturing is done there. you could -- the issue is, are there tariffs on some of the components is there an issue with tariffs when you sell over into china. there is a lot of things that could go wrong here. i think so far they have done a good job >> with the next round of tariffs which is much broader in terms of the good encompassed, will they be hit in some way in terms of the components or other aspects of manufacturing. >> they said on the call it's certainly possible they are going through the detail a good example would be. in the data center he use equipment that might come from china could they be hit something like that. >> it may not be as direct as we

think but something indirect i don't think it's a material difference. >> ford as we heard is not bringing in a model of car made in china totally different business totally different economics because of a 25% tariff on it. if there is a 25% tariff put on iphones out of china, assembled iphones out of china that's going to affect business taking a $1,000 iphone and make it 1200. >> we wouldn't expect that from everything we have seen so far i think there is always the risk. >> are they going to get a break. >> well it depends on the product category and what industry they are talking about, right? i think there has been media reports, maybe some of the components on apple watch could be susceptible i know on the call they indicated something indirect like a data center i think some of the less material items could have an issue. but i wouldn't expect this to be a major impact to their business, right? it's more of a news impact than

it is a fundamental impact as we sit here today, right. >> all right brian thank you good to see you brian white. >> well coming up coke betting on coffee process pepscy on sparkling water. the industry changing the best position for the future. trading nation up next ♪ soda pop ♪

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time now for trading nation. competition in the beverage space intensifying as coca-cola nouns the $5.1 billion could have ooh acquisition come in one week after pepsi announces a soda stream deal and dunking brands making a huge mobile push. amid all the activities what's the smartest beverage bet np craig jofrz with piperaftery and craig with investments you are looking at the charts and you are not looking at any of the names we mentioned as a favorite what do you see. >> i look at fizz as the most attractive from trading perspective. this is the third time we have made this big base on the charts and every time we have done that the last two times we have broken out to new highs.

i would say at minimum you got at least 10% upside back to 130. the sfok is 118 now and probably more that's the one i buy today courtney. >> and fizz is the ticker symbol for national beverage, the parent company of la kroi. a millennial favorite. michael what about you any smart bets in this or time to look somewhere else. >> i certainly would own coke or pepsi. the main product is soda that's in decline. fizz has done well and dunk duncan done well they are expensive right now i look the acquisition coke. and acquisition. pepsi. to me that wreaks of desperation. as i look in the beverage market, beer, soda, liquor i don't see any opportunities there. it's a big market. you can look elsewhere you don't have to play in this sector i wouldn't right now look in financials or

industrials where things are getting a little better and valuations are reasonable. >> very different market than we look at soda market. appreciate it, gentlemen more trading nation head to the website or follow us on twitter at trading nation. coming up changes to the retirement savings plan, the president about to sign an executive order at an event in north carolina we tell you what it means for you straight ahead ♪

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let's get you caught up on the markets and how they are doing. the dow and s&p 500 in the red

the dow down by 90 points. s&p down by 8 and the s&p higher by a third of one point. let's look at the cybersecurity industry via the etf hack hack, that group much stocks up more than 10% in august. that's the best month in more than three years among the names leading this the cyberarc square software and sisk of jumping more than 12% and several companies recently going public seeing big moves process cashin black and z scaler up 20% in august. let's get to sue herera foreign the update. >> hello, everyone here's what's happening at this hour senator john mccain's memorial services continue as his remains lie in state in the u.s. capitol you can see the rotunda is open to the public to pay respects. today marks the 21st anniversary of prince ets diane ace death and august 31st she was killed in a car crash in a

paris traffic tunnel just 36 years old. a washington lobbyist linked to paul manafort pleading guilty of failing to register as a foreign wgt. w samuel patton pleading guilty in federal court in d.c. as part a plea agreement he could face five years of incarceration and three years of supervised release and a fine up to $250,000. and a new study by the university of iowa finds that about 10% of u.s. children, aged 4 to 17 are diagnosed with adhd or attention deficit hyperactivity disorder an increase from 6% in 1997 and 1998 but adhd was considered one of the most common conditions among children you are up to date the news update this hour back to you melissa. thank you no deal yet with the canadians among reports of some of president trump's off the record comments upended no

objection negotiations as the deadline approaches. pu there are billions of dlarts on the line michigan, texas, omni, all export more than shh 18 billion north of the border per year this trading relationship be salvaged joining us now, an economic policy analyst and c nbc's credibilitier ron insana with us jimmy, starting off with you, you know, it's funny what a difference 24 hours makes. yesterday we were getting comments from both trump as well as trudeau saying they believed the friday deadline would be met. then today we get the curious comments off the record comments to bloomberg leaked by to somebody by the toronto star which then released them to the world. which makes us think otherwise how important do you think this would be to the markets? >> listen, if markets -- somebody starts thinking there is not a deal, which would put the mexican agreement in jeopardy because congress is not

going to approve a mexico only deal that would be a significant shock and violate expectations i think expectations are there will be a deal now there is the deadline today. it's kind of a din it's kind of not a deadline. if there is an agreement in principal today there will be negotiations going on in the coming months. so nothing final will happen today either way but good lord, the poor canadians they thought they were going to europe on vacation and still trying to hammer it out at the last moment. and remember if they hammer something the out congress has a say and it has a long awaysing to. >> i thought this sounds like another negotiation by the trump negotiation. put it out there being really tough. >> first of all, i don't understand trade policy as it is in the trump administration let alone the negotiating tactics employed here. and one has to wonder why they didn't pursue a much simpler course of action both canada and mexico were

party to the transpacific trrntship turned down by the president. all of this could be negotiated many of the things negotiated about were in the tpp this could have been a straight deal. canada would have been in. mexico in. no need for the sturm and drain we see now instead we tear tup bilateral and doing it so ham handen it's stroiing the good will we have. >> they should have renamed it the trump pacific partnership he would have signed off immediately. >> so why, jimmy, when the u.s. and canada are roughly in balance in terms of trade, why is the president playing so tough with canada? >> one, because -- one because there is a deficit two, the president's view of reciprocity in a longstanding goal in trade policy he have yous the fact of any tariff on a

u.s. product, then we are being -- even though there might be tariffsen on our side so it balances it out. he views we are being tank taken advantage of the key thing driving his policies is that we will not be taken advantage of, we will not be made fools of and we will drive a tough bargain even if it's humilitying for the other side which is what it seems for the other side a humilitying bargain the canadians will ac weese to. >> it's not not about where we add value, where capital should be flowing around the world relative to returns, the types of things business people and economists look at i meet with steel industry executives a couple day. they are getting hammered on the tariffs which remain in effect even if we conclude the agreement. if you talk to the middle size businesses and some of the hoops they have to jump through now

and could actuallien hurt if the tariffs were rescinded because they bought expensive steel they have to sell at a loss if something changes, everybody is in such a state of disarray and uncertainty over what's going on on trade, i don't think the story is really gotten out just how much u.s. business is being affected by what's going on. and all the type of uncertainty and kind of bizarre. >> is it your premise that the wounds are deeper than what the economic data shows. >> i would say yes right now. >> or will -- what it will show in the next month. >> what i heard is that some of the pass through costs particularly in the industrial industry or anything aircrafted by steel on lum flum will show up the fourth quarter of this year oh first of the years years. the the corporations are already being hit and taking some really hard body blows. >> jimmy, we had a guest on the other tai who said that the -- that the risk to the economy is not directly from trade but it's derivative from trade in that it may cause inflation to spark higher than it otherwise might

which might then cause the fed to act more precipitously than it might is that a legitimate concern. >> i think it's a concern. i think it's -- i think it's a concern more if the trade conflicts spread beyond nafta, which seems entirely possible, of course to europe and china, but the fed angle is so interesting because this administration, this economic team has sort of ignored the impact of the fed when they came out with the tax cut plan, a fiscal stimulus plan ziet we are in long expansion. it's almost as if they didn't count on the fed having a vote, the fed would raise interest rates and more stimulus means more rate increases. this is forgoting the fed has a vote on fiscal policy even if their zwrob is monetary police. >>en at flipside two other points i would make. number one there could be more concern about growth than inflation if the worldwide cha

is slows down global economy mcis weakening number two emerge being market market crisis be essex asser baited by the strength of dollar there are other variables playing in they haven't hit home yet. but if you look at the currencies crashing around the world, argentina, signature bonds are indonesia, the rupee at the lowest level in 20 years. there are things problematic. >> china weakening only encouraging the trump administration to take a tougher stance in the conflict with beijing. >> thank you rob insana and james from aei. >> and big change fl in in the retirement plans the president expected to sign an executive in charlotte north carolina where he just touched wh y nd do atoueeto know next

welcome back to power lunch. the president tweeting moments ago about his off the record comments to bloomberg on trade let's head over to eamon javers. hi, eem zbloon the president confirming the comments were in fact from him. the comments from his interview with bloomberg news leaked to a

torrent newspaper, causing disruptions in the trade negotiations between the united states and canada here in washington here is what the president said. he says wow! i made off the record comments derng bloomberg and this powerful understanding was blatantly violated more dishonest reporting i'm used to it at least canada knows where i stand. so that's the word from the president confirming that those were his words, saying at least canada knows where i stand and inmating here the leak came from bloomberg but to be fair to that news organization it's not clear that's what happened we don't know the source of the leak somehow the president's off the record comments made it to -- made it to the canadian newspaper. we are taking a live look now at the president who is arriving for an event this everyoneafter. moments after he issued the tweet. we see him greeting officials and the president is wouldn't to

do in charlotte, north carolina. the president on his way to an event in charlotte and we'll see if he has more to say on this. but now saying i made off the record to bloomberg concerning canada the powerful understanding was violated and he says at least canada knows where he stands. >> makes it complicated here today. >> the comments, eamon were off the record to bloomberg but reported by another news organization, right. that's very curious why bloomberg would take -- if they wanted to betray mr. trump's trust why they wouldn't report it themselves. >> well, sure. right. >> i mean. >> bloomberg has no interest in putting out off the record comments unless they are put going on their own wire. right? who leaked it and why is a fascinating conversation to have presumably there is two sets of tapes of conversation. the white house always tapes sarah huckabee sand o sanders herself. we will run a tape during the presidential interview and the bloomberg team would have a tape or multiple tapes of the

conversation so did both sides produce internal transcripts of that probably that's general practice with a presidential interview there might be two dualing transcripts out there circulating among a relatively small group of people. presumably higher ups at bloomberg had access to this and the reporters who conducted the interview. and then presumably higher ups inside the white house, the come's team. which one of the those people that had absent to the transcripts which leaked it is intriguing the other inrogue treeing question is are you dealing with a communications intercept of some kind. there are all sorts of wild possibilities circulating among those speculating about this and just about everybody in the white house is speculating but with he don't have real answers. >> it's clear who the president thinks leaked this information. >> that's right. >> all right eamon javers thank you very much. >> you bet. >> we have been showing you this live picture of the president touching down in charlotte, north carolina he is expected to speak and sign

of an executive order on retirement savings plans so what is likely to change? bob pisani live at nyse with details. bob. >> hello, mels oi. the rule governing retirement and this order tries to make some of the rules modern a good idea. two points stick out first the order would direct the treasury and labor departments to consider issuing regulations could make it easier and cheaper for smaller employees to band together to offer 401(k) plans for workers. right now an individual say a restaurant can't offer the retirement plan to employees very easily. but it's did you have difficult to join with other businesses or restaurants to offer a multiple employer plan provided by a financial services group the idea here is to make it easier for say uber drivers and others in the economy to join the retirement plan. it's a good idea second the president orders a review of rules retiring retirees to take withdrawals

after 70 and a half. it's out of date people are living longer, working longer and it should be raised and the mortality tables should be change. it's a good time to take a look at retirement rules. back to you. >> fascinating story here. thank you very much. bob, stay with us we are going to tape now i guess. there is -- the president's arrival party in charlotte where he intends to sign this executive order that would do what bob just let outlined for us how would it change your retirement plans and planning? alex banke is at betterment. good to have you with us alex let me start with the in weeds question why was there ever a rule requiring people to fake mandatory withdrawals from 401(k)s and iras why. >> these kinds of accounts are tax deferred, meaning your money

as long as it's in it is not taxed. and that rule allows the irs to start to collect the money on knows funds. it makes sense because people tend to spend their money in retirement but the -- the ages that are currently in play are probably out of date. and it -- that forced savings is not always needed by people. so more control over that would be helpful to them. >> really it was a simple matter of the government needed the money. so they said you have to start drawing it down. and that when it comes out of the plans generally unless it's a roth ira or ropgt 401(k) is taxable. you think this change might well mean delaying the mandatory withdrawals is a good idea. >> yeah, it is anything that helps reduce the taxes that investors have to pay and gives them control over

those taxes is a great thing >> bob, what about the other thing that we are looking at here, enabling small businesses to sort of join forces together. i know that you said that that's a good idea. so if it's such a good idea, why isn't it happening now and what are the obstacles to potentially changing this in the future. >> well can you do it but it's complicated. there are rules that basically make it very difficult for one restaurant to associate with another company. you have to be -- commonlety has to be there. there are rules that say if somebody goes under, you have 20 associations joining a retirement plan and one of them goes under everybody else is responsible for that i think they need to make rule changes. let me comment on the point about why there is a retirement age and why you have to start withdrawal the primary reason, other than the irs and the tax issues is they don't want these becoming inheritance accounts think about this suppose i have $500,000 and i don't have any age which i can

withdraw i can sit there and die and pass it on to heirs they don't want that to happen these are designed to be self-liquid eighting that's whyive had the initial age to start. what they need to to do is move it up to 73, 4 or 5. >> i thought that was part of it i have two retirement accounts of my late parents "i" required to take mandatory withdrawals out every year for that very reason, the government didn't want your ability to build a huge thing that you then pass on and when you pass it on it escapes tax completely. >> that that's it. >> all right gentleman thank you very much. bob pisani and alex of betterman thank you for helping to better our understanding. coming up hq trivia already played by millions now the company is betting sports takes it to the next level eric chemy paid the company a visit and his sports knowledge was promptly put to the test. >> which team tied for most

super bowl loss, buffalo bills, minnesota vikings. >> a lot of people. u veid he get it right yoha to stick around to find out. that's coming around t find out that's coming up next.

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welcome back to "power lunch. the popular h kbrq trivia game already played by millions of people before the break we showed a clip of your sports trivia knowledge put to the test. so the question was which team is tied for the most super bowl losses, the buffalo bills, the minnesota vikings or the new england patriots >> this is the problem with editors, you get the question wrong. so the answer is actually the patriots are tied because they've lost five super bowls, two with brady and three tied with brady hq trivia sports, it's the break out new vertical for the hq trivia app which only launched last august and now being played

by millions of people. and prize money is several thousand dollars on the line each day the company is hoping that the sports specific game is going to have a similar bust. >> we saw an opportunity to expand into sports for one reason, really, that sports fans are obsessed >> many years ago founded vine that was acquired by twitter they're still working with big name advertisers like nike and warner bros who want to reach a bigger audience. >> it's live event sponsorships, so our players are not passively engaging with hq trivia and sports at random parts throughout the day it's tuned in at a certain time.

it's incredibly valuable for advertisers. >> it's something you've got to pay attention to, so you'll likely listen to those ingame ads. we'll probably see this trend growing of these online game snows. >> it's not evident to me where it comes from. >> the advertising money and big vc money, investment money think about the uber platform was losing money for years s subsidizing rides. it's like through these big

brands ports ones, which of these music artists have not performed on the super bowl halftime show >> brittney spears >> van halen >> james brown >> can we get a buzzer going here van halen. and boxer knowledge, of the following classes of the weight classes in boxing which one is the heaviest, super lightweight, welterweight or cruiser weight >> cruiser weight. >> is someone in your ear with these answers? you can win a few bucks. a new alert on trade u.s. canada trade talks have concluded and the canadian foreign minister will hold a news conference at 4:30 eastern time that is a serious announcement those trade talks have now concluded. check please is next let's begin.

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we do have a little bit of breaking news. the trade talks between the u.s. and canada have conclude and canada's foreign minister will hold a press conference at 4:30 eastern time. this comes just moments after a presidential tweet at 2:37 in which he basically said that

when was leaked to the toronto star, by whom we don't know, did represent how he completely feels. >> we'll see what happens at 4:30 as of now the markets a little changed on the back of that headline, the 4:30 press conference >> have a great long weekend and you too at home. >> "closing bell" starts right now. it is time for "the closing bell." i'm sara eisen at the new york stock exchange coca-cola, i'll give you the full details on coke's latest acquisition coming up. it's the final trading hour of the month equities are seeing record inflows according to bank of america. where are investors putting their money? i'll have the details. president trump may be ready to move ahead with a new round of tariffs o